Paying More Just To Encourage Competition

Paying More Just To Encourage Competition

Recently I was reading an article about two local cable companies here who seem to be at a war of sorts. Basically, there is one company that is pretty much a monopoly to a certain extent and a local business that is trying to compete with it. By the looks of it, what is happening is that the larger company has dropped its rate so ridiculously low for customers in the specific area where the smaller competitor does business in that if you are looking to save money it would be a silly choice not to go with the bigger company.

Of course, you have foul play screaming from left to right and anti competition type of sentiments floating around. As well, this attracted a lot of voices on how people are still going to pay the higher rates with the smaller company because if the larger company drives them out of business you know that those low rates are going to just skyrocket after.

Do you often pay more with a smaller provider to promote competition in hopes that it will drive prices down overall in the future for everyone? I know a lot of people say they would do it, but in reality many often just go with who is cheaper. Almost reminds me of all those Walmart stories I hear in the US.

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